Domestic growth has been driven by numerous large-scale resource projects, particularly those supplying raw materials and energy to China.
Investment in physical capital grew from $155 billion to $295 billion between 2003 and 2013, due mainly to investments in large engineering-driven projects.15
Australia's growth to 2031 is expected to be less influenced by China's energy and resource needs, and relatively more affected by wider global economic trends. For our economy to be more resilient, we will need to increase our competitiveness in factors over which we have some control, such as our productivity.
The Australian economy is projected to grow at around three per cent per year over this period.16 If we are to achieve or exceed this rate of growth, Australia will need to become more productive, exploit its natural advantages and continue to transition away from sectors where we no longer hold a competitive advantage.17
These trends will require future infrastructure investment arising from the Plan to be focused at the intersection of our natural advantages and future global growth industries.
Industry sectors offering Australia the most promise in the future include: gas, tourism, agriculture, health, international education, and wealth management.
While the list above is not exhaustive, it provides an indication of the economic sectors that should be taken into account in developing the Plan.
_________________________________________________________________________________
15. ACIL Allen Consulting (2014a), p. 37
16. ACIL Allen Consulting (2014a), p. 99
17. Business Council of Australia (2014)